Valu is coming to the EGX: EFG Holding’s fintech platform Valu plans to offer up to 25% of its shares on the EGX within a year, CEO Walid Hassouna told Asharq Business. He didn’t specify how much Valu is looking to raise from the offering.

Still in early stages: “We are yet to decide on the stake that will be offered. That will highly depend on the [revenues] … the higher they are the lower the stake offered will be,” he said, adding that he expects the offering to be for 20-25% of the company.

Advisors: EFG Hermes will act as the financial advisor for the transaction; other advisors may be tapped later in the process.

We’re already expecting a couple of IPOs this year: The developer of the new administrative capital Administrative Capital for Urban Development is set to be ready for listing by 2Q 2024 and aims to raise over EGP 150 bn from listing 5-10% of its shares in one of the EGX’s largest ever transactions. Meanwhile, Raya Holding plans to offer 30-35% of its IT arm Raya Information Technology on the EGX in 1H 2024.

2023 was pretty dry: Last year saw a single company make its EGX debut, Taqa Arabia startedtrading on the EGX in July 2023 — in a technica listing, not an IPO — listing 1.35 bn shares on the exchange.

IN THE PIPELINE FOR VALU THIS YEAR-

Valu could begin Jordan operations by the end of the year: The company expects to launch its services in Jordan sometime between late 2024 and early 2025, pushing back its initial plans to launch in the country early this year.

What’s the hold up? Valu is awaiting its license from the Central Bank of Jordan, which it expects to receive in the first half of the year, he added. The company will kick off operations three months after receiving its license.

Ready to go: Valu has already hired a CEO to take care of its Jordan operations and is on the prowl for people to fill other senior positions. The new CEO will be announced after the firm receives final approvals from the Central Bank of Jordan.

New markets to follow? Valu could look at other North African markets following its launch in Jordan. The firm is hoping to begin operating in either Tunisia or Morocco “hopefully” by 2025, Hassouna added. The company’s expansion plan involves looking at markets “with favorable dynamics that allow for the implementation of its full product and services … flexibly,” he previously said.

Remember: Valu is investing some USD 10 mn into its Jordan expansion, around USD 7 mn (JOR 5 mn) of which is going towards capitalizing its local unit, Hassouna said in October.

Valu has big plans for 2024: Valu aims to increase its net income by 117% this year to EGP 500 mn. It also aims to increase transactions carried out through its platform to reach EGP 13 bn, up 41% from the year before.

The fintech platform wants to close a EGP 900 mn securitized bond issuance before the end of March. The company plans to issue a total of EGP 4 bn worth of securitized bonds this year, with EGP 1 bn closed in each quarter, Hassouna adds.

PREPAID VALU CARD?

Another prepaid card has entered the market: Valu has partnered with our friends at Visa to launch its prepaid card, they said in a joint statement (pdf) yesterday. Cardholders can transfer funds from their Valu account to the prepaid card for everyday use.

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